The Compound Protocol is an open-source platform for decentralized lending. The system, which is based on the Ethereum network, lets users lend and borrow different cryptocurrencies. In order to join a liquidity pool and begin collecting interest, owners of supported assets can deposit their token into a Compound smart contract. Other users who borrow money and charge interest for the loans are where the interest comes from. Governance is the main programmatic task performed by COMP. COMP is built on Ethereum in accordance with the ERC20 standard for tokens. Users can vote on modifications to the protocol by holding COMP. Any COMP holder may submit a suggestion for consideration by the community of compound.finance. A given change to the protocol, such as a new asset supported or similar governance change, requires the support of 1% of COMP holders in order to be put up for a vote and to prevent spam. Over a three-day voting session, anybody holding COMP is qualified to cast a ballot on a specific proposal. If a particular governance change is approved, it will go into effect two days later, giving those who may be negatively impacted time to close out their positions.Learn More
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